Variability is a crucial issue in new service design due to a number of reasons:
1. First and foremost, variability can significantly affect the consistency and quality of service delivery. When a service is highly variable, it may be delivered in different ways each time, resulting in potentially inconsistent outcomes. This is important because customers often seek consistency in the services they use.
2. Secondly, when service delivery is inconsistent, it can lead to customer dissatisfaction. If a service performs excellently on one occasion but poorly on another, it can frustrate customers and lead them to perceive the service as unreliable. Customers may then seek alternative providers who can offer a more consistent service.
3. Lastly, variability could potentially damage the reputation of the company. In the current digital age, news of bad customer experiences can spread quickly and widely, leading to a negative perception of the company among potential customers.
To mitigate these risks, when a company designs a new service, it needs to understand and manage variability. This includes identifying the sources of variability and implementing strategies to control it, thereby ensuring the delivery of a reliable, high-quality service every time.
By maintaining a low level of variability, a service provider can offer a consistent experience that meets or exceeds customer expectations, thus building customer satisfaction and loyalty, and enhancing the company’s reputation.